Boise Real Estate Market Trends: Low Inventory & Strong Buyer Demand

If you follow national headlines and real estate news, you’ve likely heard the chatter about this week’s Fed meeting. With inflation on the rise, the Fed is expected to raise rates again – and they are currently sitting at a 15-month high.

National headlines also continue to report a softening real estate market in general, with rising inventory and declining home values. But this is a national trend that does not tell the story of what’s happening in the Treasure Valley.

At the end of August, Ada County had 1,076 active existing home listings, significantly less than this time last year. That puts the county at approximately 1.9 months of inventory, meaning if no other homes were listed and buyer activity remained where it has been, we would run out of inventory in less than 2 months.

This is an important statistic to follow for a number of reasons. When available inventory substantially outpaces buyer demand, prices typically soften – which is what national trends are showing. Right now in Ada County, however, we are seeing the opposite. Inventory remains limited while buyers remain engaged, and desirable, well-priced homes in sought-after markets are moving particularly well.

Is this a seller’s market? In some ways, yes. Low inventory gives sellers an advantage, but a seller’s market does not mean every property will sell quickly or that sellers can name their price. Today’s buyers are informed and selective. Condition, location, presentation, and pricing still determine how the market responds to an individual property.

What makes the current environment particularly encouraging for both buyers and sellers is the pace of appreciation. Values are increasing at roughly 3% annually, a rate we view as healthy and sustainable. We are not experiencing the dramatic price acceleration that characterized the pandemic-era market, when values moved outside normal ranges and were followed by the inevitable price correction.

Instead, we have limited supply, consistent demand, and measured appreciation. From a market fundamentals perspective, that is a strong place to be.

Current market data may favor sellers, but there is plenty of opportunity for buyers. Purchasing into a market with stable values and sustainable appreciation provides an opportunity to begin building equity without chasing the extraordinary price escalation we saw several years ago.

For sellers, success in this market comes down to understanding exactly where a property fits within its micro-market. Our agents look beyond broad Treasure Valley statistics to current competition, pending activity, recent sales, buyer behavior, and inventory within the property's specific price point and neighborhood. Those factors help us advise our clients on when to list, how to position the property, and where to price it based on their desired outcome.

That same level of strategy extends to preparing the home for market.

Some properties need very little. Others benefit considerably from thoughtful preparation before the first buyer ever walks through the door. Our team can be as involved as you need, from identifying the improvements most likely to add value to coordinating trusted contractors, bids, timelines, repairs, paint, design selections, and staging recommendations.

You don't need to know what needs to be done before you call us. Determining what is worth doing, what isn't, and how to bring your home to market successfully is what we do exceptionally well… and what has contributed to our team’s #1 ranking for sales volume in both Boise and the state of Idaho.

If you're considering a sale this fall, or simply want to understand where your property sits in today's market, we're always happy to answer your questions.

Lysi Bishop Real Estate is an expert in the Boise Real Estate market, offering unmatched expertise and unparalleled service to clients around the Treasure Valley. With over 30 years of in-depth knowledge and experience, Lysi Bishop inspires and leads her team of dedicated agents towards earning the title of the Best Boise Real Estate Team, year after year.

Our team specializes in luxury homes and five-star, concierge-style service in Boise and all surrounding areas, including neighborhoods like the North End, East End, Highlands, Collister, Harris Ranch, Warm Springs Mesa, East End Foothills, Boise Bench, SE Boise, Barber Valley, and West Bench, and extending into Eagle, Two Rivers, Hidden Springs, Meridian, Nampa, and Kuna.